Redwire, Firefly, Planet Labs Drop As AST SpaceMobile Offering Adds Drag: Benzinga's Space Stock Watch

Space stocks fell on heavy trading Thursday as investors digested several industry headwinds. 

United Launch Alliance's Vulcan rocket experienced a solid rocket booster issue on Thursday, which heightened hardware concerns across the industry. 

Additionally, the pure-play space sector remains highly sensitive to Elon Musk's commentary, a reported SpaceX IPO and the accelerating integration of AI with orbital data.

Adding to the pressure, a major space satellite player announced a massive convertible note offering that pulled the entire sector lower on Thursday. 

Here's a look at the recent developments and space stocks' price action. 

• ASTS stock is plunging.

AST SpaceMobile – ASTS

AST SpaceMobile, Inc. shares tumbled 15% after announcing a $1 billion convertible note offering. The announcement added drag to the entire space sector. 

In mid-January, analysts at B. Riley Securities downgraded AST SpaceMobile from Buy to Neutral but raised its price target to a Street-high $105, representing roughly 20% upside from current levels. 

Despite Thursday's slip, ASTS stock has gained about 15% in 2026. 

Rocket Lab – RKLB 

Rocket Lab Corp. continued to see pressure, trading down another 8% on Thursday, adding to losses of more than 27% over the past month. 

The stock is still digesting the news of a stage-1 tank rupture during a recent qualification test for its upcoming Neutron rocket. 

Although the company has a $1 billion+ backlog, fears of a timeline slip for its first medium-lift launch have prompted investors to take profits after a massive 12-month rally.

Redwire – RDW 

Shares of Redwire Corp. dropped Thursday, following the space sector's downward momentum and heavy insider selling. 

Zacks Investment Research also downgraded Redwire from a Hold to a Strong Sell on Thursday, adding pressure on the stock. 

RDW stock has shed 24% over the past month. 

Firefly Aerospace – FLY 

Firefly Aerospace, Inc. shares also moved lower on Thursday with investors digesting industry hardware setbacks and AST's offering. 

Firefly stock started the year off strong, but has been in a sharp correction, falling nearly 40% over the past month. 

Planet Labs – PL

Planet Labs PBC pulled back with the sector, despite announcing a partnership with AXA Digital Commercial Platform on Thursday morning.  

The companies will integrate Planet's high-frequency satellite data into AXA’s AI-driven disaster management tool to predict and respond to floods and wildfires in real-time.

In January, Planet signed a nine-figure deal with the Swedish Armed Forces, proving that its satellite-as-a-service model is scaling effectively.

Intuitive Machines – LUNR 

Intuitive Machines, Inc. pulled back on Thursday, following recent strength after completing the $800 million acquisition of Lanteris Space Systems and securing Air Force Research Laboratory contracts. 

Traders could also be locking in gains—with the stock having nearly doubled in the last year—ahead of the high-risk IM-2 lunar mission scheduled for later this year. 

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